Executor Fee Calculator (MN)
If the will does not specify how executor compensation should be calculated, MN estates must follow state compensation rules.
Click to scroll to MN Fee Calculator.
How Much Should an Executor be Paid in MN?
In Minnesota, the estate executor is known as a "personal representative".
In cases where the will does not specify compensation amounts, the state of Minnesota uses the generally accepted principle of "reasonable" compensation in determining executor's fees, specifically considering:
- time and labor required
- complexity and novelty of problems involved
- extent of responsibilities assumed and results obtained
It's common in MN to use a "services-rendered" approach, and bill by the hour (the hourly rate can be determined according to the factors above). Executors have also traditionally set fees as a percentage of the overall estate value, indirectly referenced by the "extent of responsibilities".
So for example, a $600K estate which required 750 hours of work might generate $22K in executor fees (see calculator below)
Whatever approach you decide, it is important that you keep detailed records of your efforts in case you need to justify your fee in court:
- Nature of the task (e.g., Drove to bank to get medallion stamp for IBM stock)
- Amount of time spent (e.g., 2 hours)
- Hourly rate for the task (e.g., $35/hour)
- Results (e.g., sold the car for Blue Book value)
Even if a will specifies the compensation for the executor (and there is no contract with the decedent regarding compensation), the executor may renounce the relevant provision before being assigned executor, and be entitled to reasonable compensation as per above.
MN Compensation Calculator
EstateExec provides the following executor compensation estimator for MN estates, but please keep in mind that there are no hard and fast rules for MN estates, and ultimately you must determine what would be reasonable for your particular circumstances. By using this estimator, you acknowledge that EstateExec provides any results as informational input only, not as legal advice, and cannot be held responsible for any inaccuracies for, or misunderstandings about, any given estate.
Below EstateExec provides two compensation approaches used in various incarnations throughout the United States: you can decide which, if either, is appropriate for you. The first uses a sliding percentage scale based on the total estate gross value (the larger the estate, the smaller the percentage); the second simply compensates the executor for the value of his or her time, and is probably the more common approach in MN. See estimation methodology for details.
You can use this calculator now, but if you use EstateExec to help you track the settlement process, it will automatically calculate the inputs for you based on the estate and suggest those values in the fields below (you can create an estate for free).
Executor Compensation Considerations
Timing: Generally, any executor compensation is paid during the final stages of estate distribution, as one of the last things the executor does. Be careful in situations in which there is not enough to pay yourself and all other outstanding debts, as this may expose you to legal issues. However, in most states, executor compensation has precedence over almost all other debts (for example, in NY, only funeral expenses have a higher precedence).
Communication: You may wish to discuss your compensation with the other heirs early during the process, so they don't end up surprised and unhappy when they notice their shares are somewhat less than expected. You may also want to leave the door open to modify your planned compensation as the process unfolds and you determine how much or how little work will actually be required on your part.
Optional: Keep in mind that collecting executor fees is optional. Even if the will specifies compensation, or if state laws support specific fees, the executor can choose to forego that compensation, and many do. That being said, serving as an executor is A LOT of work, and there's a reason that state laws support such compensation.
Tax Optimization: One reason an executor might choose to forego explicit compensation is that executor compensation is taxable, while inheritances are generally not taxable. Consequently, if the entire estate (or a large portion of it) is going to be inherited by the executor, you may end up with more after-tax value if you forego executor compensation.
Trusts: Note that trustee compensation for managing a trust is handled differently than that of executor compensation for settling an estate (see Trustee Compensation).
Expense Reimbursement: In addition to compensation for his or her services, an executor is also entitled to reimbursement from estate proceeds for legitimate and reasonable estate administration costs, such as death certificate copies, notarization of documents, the EstateExec licensing fee, and even travel costs strictly associated with managing the estate. Once you have established an estate banking account, you can often pay for these costs directly from that account, so that no reimbursement is necessary, but you should keep good records in case you later have to justify your expenditures to the IRS or to estate heirs. Executor expenses can be reimbursed when desired, although certain probate proceedings may require prior approval. While executor expenses are generally not considered when calculating executor compensation (i.e., executor fees), if the executor incurs substantial costs paying for services that would normally be directly handled by an executor, a probate judge may sometimes require that the default executor fee be reduced accordingly.
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Additional Information
See also the EstateExec Complete Executor Guide.
In case you're interested, see also Compensation for general remarks on executor compensation, and note that authoritative details about executor fees in other states can be found here: